The Tech Companies That Stand To Lose The Most From Net Neutrality Repeal
In a 3-2 decision, the FCC voted to repeal net neutrality. The battle over internet regulation will now likely head to the courts.
Digital Trends Editor-In-Chief Jeremy Kaplan discusses who will be hit the hardest if and when the regulations go away. Big tech companies like Netflix and Facebook are at the top of the list. They have the largest amount of traffic and require the most data to reach their hordes of users.
Without net neutrality, carriers such as Verizon and AT&T could restrict data speed to specific sites. Supporters of net neutrality argue that repealing the regulations will lead to a tiered data system. Customers would have to pay extra to access the most popular and data-heavy sites.
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Netflix is slated to give its Q1 report after the closing bell, and Jason Moser, a senior analyst at The Motley Fool, joined Cheddar News to give a preview of what to expect from the streaming giant's earnings. "I think Netflix, like many businesses out there the last couple of years, says it's pulled forward a lot of success just due to the pandemic, and that's not necessarily a bad thing," he said. "But it does alter the picture, the growth picture maybe, going forward." Moser also noted that the streaming space for Netflix is especially competitive now as opposed to about a decade ago.
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